Go to Settings>> Application Manager or Apps>> Open “All” apps
From the list of apps find Google Play store >>Clear Data and Clear Cache
From the list of apps find Google Service Framework >> Clear Data and Clear Cache
Now install or update app from Google Play Store
If it still didn’t work try uninstalling Google Play Store updates first

Method 2:

Go to system settings>> Accounts>>Google>>remove your Gmail account
Now from settings>>Apps>>All> Force stop, Clear data and cache for Google Play Store, Google Service Framework and Download Manager (like in method 1)
Now again go to settings>> Accounts>>Google>>Add your gmail account
Restart your android and then accept all the Google terms and setup Google settings
Rerun Google Play Store and update or install your app.

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